Calif. ranks 5th with 'healthiest' borrowers

California has one of the most financially healthy crops of would-be mortgage borrowers in the nation, says an analysis from online home-loan company LendingTree on Wednesday.

The Golden State ranked fifth when considering credit score, loan-to-value ratio and other factors in the second quarter. Mortgage applicants here had an average credit score of 679 and the average loan-to-value ratio of 85.6 percent.

Washington D.C. ranked first, (689 and 85.3 percent.) New Jersey, Hawaii and Massachusetts rounded out the Top 5.

By default, mortgage lenders have been seeing more qualified loan applicants because tight lending standards have discouraged "marginal borrowers" from entering the housing market, said Mark Goldman, real estate professor at San Diego State University. Pre-recession, lenders would issue home loans with little or no documentation. Now, financial documents are heavily scrutinized.

"In 2004 to 2006, you and I were talking about people who had no business considering owning a home," Goldman said. "Now, most people are aware it will be difficult for (marginal borrowers,) if not impossible."

Goldman also has noticed a trend of would-be borrowers trying to increase their credit score, which plays a part in not only qualifying for a mortgage but also determining how much one pays for a loan.

U.S. borrowers increased their average score by 10 points since a year ago, LendingTree numbers show.

Goldman also advises clients to avoid racking up new debt prior to buying a home and keeping finances in check.